USDA offers $12.65 million for FY 2026 to four existing Dairy Business Innovation initiatives to diversify dairy markets and farmer income, with priority encouraged for equipment and infrastructure subawards.
Funder: Agricultural Marketing Service
Due Dates: December 1, 2026 (Application, 11:59 p.m. Eastern Time)
Funding Amounts: $2.3 million–$3.45 million per initiative for 36 months; approximately $12.65 million total
Summary: Supports existing regional dairy initiatives providing technical assistance and subawards to expand dairy markets, innovation, and regional milk use.
Key Information: Only the four existing DBI initiatives may apply directly for this funding.
The USDA Agricultural Marketing Service (AMS) administers the Dairy Business Innovation (DBI) Initiatives program to support dairy businesses in developing, producing, marketing, and distributing dairy products. FY2026 funding supports the four existing initiatives in continuing work begun under previous awards. The program aims to diversify dairy markets, reduce risk, develop higher-value uses for dairy products, diversify farmer income through processing and marketing innovation, and encourage regional milk production.
Initiatives provide nonmonetary technical assistance and subawards to dairy businesses. Assistance can include business consulting, strategic planning, marketing, product development, and distribution support. Subawards support dairy farm modernization and grazing transitions, processor facility and process updates, and dairy product development, packaging, and marketing. AMS strongly encourages equipment and infrastructure subaward projects. Initiatives may serve specialty products or products made from cow, sheep, or goat milk.